In”Women can take control to protect and grow their wealth,” the Nashville Business Journal offers a summary of a more detailed report on gender differences and investing from UBS. Some of the challenges women may face when attempting to build wealth include:
- The pay gap between women and men
- Seeking work with flexible hours
- Taking time away from work (often for caretaking duties)
- Living longer than men
If it is true that many women seem reluctant to take risks with their investments, “here is also evidence to suggest that women may invest in a more disciplined way.” And anyone who has discipline can use that to their advantage.
Women also want to invest in companies they believe in. You can work with a Fee-Only financial advisor to find companies you believe in that will offer good returns. You don’t have to invest in the sure-bet money makers if you don’t want to give them your financial support. And you do not have to lose money when investing in companies that align with your values.
And while the Nashville Business Journal noted that women tend to want to leave more for the next generation, the USB report compares a fictional Jane and Joe who are both 25 and both have the same financial goals:
“preserve and grow their inheritance of USD 1 million for the next generation
buy a house at the age of 35
enjoy a decent lifestyle during retirement.”
There are young women and young men that want to leave generational wealth. While women are traditionally seen as nurturers, this doesn’t mean that men are not concerned with leaving a financial legacy. The issue is that women’s earning capacity is often hampered in ways that makes it more difficult for them to finance their own retirements and leave something for their heirs. Despite these challenges, women can create wealth for themselves and their loved ones. This is why strategic investments and financial planning are so important.